Free CRM Risk Control & Mitigation Questions and Answers

Question 1

What is the goal of risk control?

Accepted Answer

To reduce the frequency or severity of risks.

Answer

The primary goal of risk control is to implement measures that either prevent risks from occurring (reducing frequency) or lessen their negative impact if they do materialize (reducing severity). This proactive approach aims to protect an organization's assets, operations, and objectives from potential harm. Effective risk control helps maintain business continuity and minimize losses.

Question 2

Which of the following is an example of a physical control?

Accepted Answer

Security camera installation.

Answer

A physical control is a tangible measure designed to prevent or deter unauthorized access, damage, or theft of assets. Installing security cameras directly fits this definition by providing surveillance and acting as a visible deterrent. It physically protects an environment or asset, unlike policies or guidelines which are administrative.

Question 3

What does 'risk mitigation' typically involve?

Accepted Answer

Reducing the impact of a risk event.

Answer

Risk mitigation involves taking actions to lessen the potential negative consequences or likelihood of an identified risk. While it can also aim to reduce the probability, its core focus is often on minimizing the damage or disruption if the risk materializes. This makes the risk more manageable and less costly to the organization.

Question 4

What type of control is a company policy that limits access to data?

Accepted Answer

Administrative control.

Answer

An administrative control is a policy, procedure, or guideline established by management to govern behavior and manage risk. A company policy limiting data access falls under this category as it defines rules and responsibilities for information security. It's not a technical solution (like software) or a physical barrier (like a lock).

Question 5

How does redundancy help in risk mitigation?

Accepted Answer

It ensures operations continue if the primary system fails.

Answer

Redundancy is a risk mitigation strategy that involves duplicating critical components or systems. Its purpose is to provide a backup or alternative pathway, ensuring that if one part fails, the system or operation can continue without interruption. This significantly enhances resilience and reduces the impact of single points of failure.

CRM - Certified Risk Manager Practice Test

CRM - Certified Risk Manager Practice Test

Free CRM Risk Control & Mitigation Questions and Answers